Back in the day, used cars were considered to be cheaper alternatives to new cars. In a standard economic climate, that rule holds pretty well. However, the Bay Area (and the rest of the nation) has been rocked by economic turmoil since 2008. Thus, used cars have been getting more expensive relative to new cars for complex economic reasons.
For instance, one survey found that the trade in value of a used car has escalated by 33% over its 2007 value to around $8,500. Meanwhile, the trade in value of a new car has bumped up less than 10% to approximately $30,500, according to statisticians at edmunds.com.
A Consumer Report analysis found that the pool of used cars has dramatically shrunk because economically stressed drivers are opting for more frugal options. Ironically, we may be witnessing a relative shortage of used cars. This supply shortage combined with the spike in demand brought about by the economic stress may begin to explain the price shifts.
What do these large scale trends mean for you, if you’re trying to repair a car, fix worn components, or budget out your transportation costs?
If you are trying to save money and extend the life of your current car, look to the team here at Shattuck Auto for experienced, thorough, and professional Oakland auto body repair. We are dedicated to helping drivers keep their cars running with state of the art auto body repairs, expert color paint matching, and precision unibody and frame work.
Call us today at 510-848-6281 for answers to your automotive dilemmas or stop by your friendly Berkeley collision repair service.